Hey all, I wanted to start a back-and-forth that will, hopefully, eventually be fruitful and prosperous for everyone involved in the Detroit market. Detroit is still judged by those ignorant to its success, but I have a surprising number of friends whose properties have appreciated from 200k to almost 1mil due to the construction of the Little Caesars Arena, the updated infrastructure of Detroit, and, the reason for this post, the new M-1 rail, which connects the northern suburbs to the heart of Detroit. Now, whether you want to buy and hold or rent out properties, it's very difficult to argue that it would be a bad investment to acquire properties along the rail, north of the city. Therefore, does anyone have any strategies as far as areas that are still low-buy, but will be part of the boom? It gets sketchy very quickly, but I'm sure there areas with potential. Let's all make some money!

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David Stevoff

Rental Property Investor
Detroit, Mi

David Stevoff

Rental Property Investor
Detroit, Mi

Replied January 18, 2019 07:45

@Anthony Fecarotta

Detroit is on its way up and of course like any market there are upcoming locations and locations you really need to stay away from. The revitalization is happening all over the city from downtown to the suburbs. The city implemented a $130 million budget for 7 specific neighborhoods and thats is where you get good ROI and appreciation. I have seen homes sell for 5k 8 years ago and now are going for 140k rehabbed. Try to target B class neighborhoods that will get you some good appreciation. I am seeing a lot of single family homes going for the 45-50k range tenant occupied and around a 15% ROI and some appreciation. Cap rates for multi units from what I have seen are around the 10% range.

Here are some articles to look over might be of help :

Detroit Revitalization Efforts - https://www.freep.com/story/news/local/michigan/detroit/2018/05/07/how-detroit-plans-raise-130-m-invest-7-neighborhoods/585989002/

Areas on Detroits "Revitalization Map"

https://nextcity.org/daily/entry/detroit-expanded-plan-to-spread-the-wealth-to-neighborhoods

Fitzgerald...

https://www.crainsdetroit.com/article/20170405/news/170409919/fitzgerald-neighborhoods-4-million-plus-project-to-be-led-by-the

http://www.fitzgerald-detroit.com/background/
Grandmont-Rosedale

https://www.crainsdetroit.com/article/20180510/news/660351/develop-detroit-plans-70-new-renovated-homes-in-north-end-grandmont

Duggan

https://www.yahoo.com/news/detroits-mayor-walks-line-recovery-gentrification-can-work-cities-090025888.html?soc_src=community&soc_trk=fb

Bagley

https://detroit.curbed.com/2018/2/15/17016290/7-liv-development-breaks-ground-avenue-of-fashion